Vermont Business Magazine The Vermont Department of Labor announced today an increase to the state’s minimum wage. Beginning January 1, 2020, the state’s minimum wage will increase $.18, from $10.78 to $10.96, as determined by the Department of Labor’s Economic & Labor Market Information Division.
The calculation for this increase, as well as for subsequent years, is determined by state statute, which calculates the rate of inflation using the Consumer Price Index (CPI). The recent increase of 1.7% to the CPI, applied to last year’s minimum wage, raised the rate by $0.18 per hour.
This adjustment also impacts the minimum wage of “tipped employees.” The Basic Tipped Wage Rate for service or tipped employees equals 50% of the full minimum wage or $5.48 per hour starting January 1, 2020. The minimum wage will continue to increase each year with inflation as calculated by the Department of Labor.
For more information about the Vermont Department of Labor, visit: www.labor.vermont.gov
Source: MONTPELIER, VT – Vermont DOL 10.7.2019